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AP Macroeconomics
Unit 3 – National Income and Price Determination
Topic 3.1
How does severe drought in China affecting the country's inflation rate impact aggregate demand?
Increase in aggregate demand due to an increase in consumer spending.
Decrease in aggregate demand due to a decrease in consumer spending.
Movement along the curve: the amount of real GDP will decrease due to an increase in the price level (inflation).
No effect on aggregate demand.
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AP Macroeconomics - 3.1 Aggregate Demand
Key terms
Aggregate demand
Inflation Rate
Severe Drought
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About Us
About Fiveable
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Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
Report an Issue
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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